Pro U d for the year. Exercises E connect EXERCISE 7-1 Preparing Schedules of Exp chedules of Expected Cash Collections and Disbursements [LO2- CC5, 7, 12] Vou have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise cup The following information is available about the company's operations: a. The cash balance on December 1 will be $40,000. b. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 65,000 $ 70,000 $ 83,000 Sales on account 400,000 525.000 600,000 Sales on account are collected over a three-month period in the following ratio: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% are uncollectible. c. Purchases of inventory will total $280,000 for December. 30% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $161.000, all of which will be paid in December d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation. These are paid in the period incurred. e. A new web server for the marketing department costing $76,000 will be purchased for cash during December, and dividends totalling $9,000 will be paid during the month. f. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position, as needed. APTER 7: BUDGETING Required: 1. Prepare a schedule of expected cash collections for December 2. Prepare a schedule of expected cash disbursements for materials during December 10 S ments for materials during December to suppliers for inventory purchases. 3. Prepare a cash budget for December. Indicate in the financing section any borrowing that the month. he financing section any borrowing that will be needed during